For effective compliance with Anti-Money Laundering and Combating Financing of Terrorism (AML/CFT) laws, the Inter-Governmental Action Group against Money Laundering in West Africa (GIABA) Tuesday, began a three-day training for operators of Bureau De Change.

The Director General, GIABA, Mr Edwin W. Harris in his remarks, noted that while the Mutual Evaluation Report of Nigeria captured 4,798 registered forex dealers with an asset base of $469,734,000.00U, the sector has remained vulnerable to money laundering and terrorism financing activities.

According to him, limited awareness of money laundering and terrorism financing, attendant risks as well as poor implementation of preventive measures are some of the challenges confronting the sector.

Represented by the Acting Director, of Evaluation and Compliance, Dr Jeffrey Isima, the D.G stated that the primary objective of the workshop was to provide a platform for participants to share experiences and foster cooperation and collaboration for effective implementation of AML/CFT preventive measures in the currency exchange sector.

He said: “Specifically, the workshop seeks to raise awareness, develop a common understanding among stakeholders and enhance the capacity of participants on ML/TF issues within the foreign exchange bureau sector.

“It also seeks to enhance risk-based supervision of the sector, provide a platform for sharing of experiences and good practices on AML/CFT issues as well as promote cooperation, coordination and engagement among relevant competent authorities, self-regulatory authority (ABCON) and foreign exchange operators on how to effectively implement AML/CFT preventive measures.”

About 150 participants were drawn from the Central Bank of Nigeria, the Economic and Financial Crimes Commission (EFCC), the Independent Corrupt Practices Commission (ICPC), the Nigeria Financial Intelligence Unit (NFIU), the Association of Bureau de Change Operators of Nigeria (ABCON) and foreign exchange bureau operators.

The D.G. also expressed concern over the preponderance of black market operators, and the fact that a number of the transactions are cash-based, which he said, constitutes a serious ML/TF risk.

“These findings are consistent with the outcomes of a typology study on Money Laundering and Terrorist Financing through the Informal and Illegal Currency Exchange Service Providers in West Africa published by GIABA in 2020.

“The study found the sector vulnerable to ML/TF and concluded that money laundering through foreign currency exchange operations is a very efficient way of disguising the true origin of illegal proceeds and their integration into the legal financial system in the region.

“Some elements of context-specific to Nigeria call for attention when considering the currency exchange sector. Nigeria has the largest economy and financial sector in the region and has significant trade with countries in the region with important cash-based transactions.

“It also shares borders with countries that are members of two distinct monetary zones – The west African CFA zone and the Central African CFA zone. Trade and financial exchanges with these neighbouring countries involve currency exchange and therefore, a strong demand of Bureaus de Change services.

“The galloping inflation that the world economy is experiencing as well as the depreciation of the Naira, has led to greater demand for international currencies, in particular the US Dollar.”

The D.G., therefore, called on national stakeholders to cooperate and collaborate to improve the compliance of the currency exchange sector with acceptable international AML/FT preventive measures.

“On its part, GIABA will continue to provide technical support to its member States, including Nigeria to protect their national economies and financial systems against money laundering and terrorism financing.

Speaking, the President, of the Association of Bureau de Change Operators of Nigeria (ABCON), Alhaji Aminu Gwadabe, commended GIABA for the training, insisting that crime prevention requires such a step-by-step approach including knowledge and information dissemination. According to him, the association comprised all licensed Bureau de Change that works together with the government against money laundering and terrorism, financing.

“As an association, we support any major reforms that will enhance the capacity of members. it is about working the theory, working the talk.

“We are moving a step forward from theory to effectiveness. That is the purpose of this workshop, and we have members from all six Geo-Political Zones of the country. We are willing to learn, unlearn and relearn.

Describing BDC as a trillion-naira sector, Gwadabe noted that aside from contributing greatly to the nation’s economy, the association has over time, helped in bridging the gap between the official and so-called a parallel market.

He however decried some stringent policies from the Central Bank which tend to suffocate operators by shutting down every avenue of sourcing foreign currencies, especially the diaspora remittance. This, he said, has greatly affected members and placed by fate in the hands of CBN regulators.